1. 3rd Annual Appalachian Basin Gas Well Deliquification Seminar Marietta College, Marietta, Ohio June 4 - 6, 2012 Selection of Artificial Lift Method Breakout Session Bill Lane – Moderator

2. June 4 - 6, 2012 2012 Appalachian Basin Gas Well Deliquification Seminar, Marietta, Ohio 2 Selection of Artificial Lift Method Breakout Session Case Study: Fracturing of adjacent wells creates shale fines in producing wells causing equipment erosion. The price to pay for effective fracturing Try conformance technologies (sand control)

3. June 4 - 6, 2012 2012 Appalachian Basin Gas Well Deliquification Seminar, Marietta, Ohio 3 Selection of Artificial Lift Method Breakout Session Artificial Lift trends in deep horizontal wells (shale) Jet pumps for initial drawdown and frac flow-back Gas lift preferred in gassy wells with high liquid production Hybrid gas lift / jet pump completions –Wireline run & retrieve jet pumps and GLVs

4. June 4 - 6, 2012 2012 Appalachian Basin Gas Well Deliquification Seminar, Marietta, Ohio 4 Selection of Artificial Lift Method Breakout Session Artificial Lift trends in deep horizontal wells (continued) For low liquid production and/or declining FBHP: –Rod lift is the most common lift technology –Plunger lift is the most cost effective technology (if production capacity is adequate) –Velocity/dead strings used by some producers, injected gas can be used to increase velocity FBHP < P INJECTION < SBHP –Capillary foam (surfactant) used if water cut > 20%, sometimes used with velocity strings

5. June 4 - 6, 2012 2012 Appalachian Basin Gas Well Deliquification Seminar, Marietta, Ohio 5 Selection of Artificial Lift Method Breakout Session Industry debate: Where to land pump? As deep as possible to improve drawdown, but… –Pumps landed in horizontal loose 1/3 run life –Pumps landed in build section loose 2/3 run life –Mixed economical results for pumps landed beyond 60% deviation. 75 to 100 ft above liner top to reduce turbulence & gas interference

6. Selection of Artificial Lift Method Breakout Session Final Thoughts If possible keep the pump in vertical section. –So should we maximize the build angle? Production from horizontal wells is sensitive to well geometry (SPE 149477)  Operators whose drilling, completion, and production departments work together to optimize production will be the most productive. June 4 – 6, 2012 62012 Appalachian Basin Gas Well Deliquification Seminar